Opinion
July 1, 1952.
Appeal from the Circuit Court, Dade County, Grady L. Crawford, J.
Glenn C. Mincer and Francis X. Knuck, Miami, for appellant.
Ira C. Haycock, Miami, for appellee.
March 3, 1952, the City of Homestead filed its petition in the Circuit Court to validate certificates of indebtedness aggregating $100,000 payable quarterly in the sum of $7,500 with interest at three and one-half per cent per annum. Ordinance 367 authorizing issuance of the certificates pledges the anticipated cigarette tax revenues accruing to the city under Section 210.03(5), Florida Statutes 1951, F.S.A., for their payment. There was an answer to the petition challenging the power of the city to issue the certificates payable from the cigarette tax revenues without an approving vote of the freeholders. On final hearing the chancellor overruled this objection and validated the certificates. This appeal was prosecuted.
The point for determination is whether or not the City of Homestead had power to issue certificates of indebtedness payable from cigarette tax revenues accruing to it under Section 210.03(5) Florida Statutes 1951, F.S.A., without an approving vote of the freeholders as required by Section 6, Article IX of the State Constitution, F.S.A.
Section 210.03(5), Florida Statutes 1951, F.S.A. among other things, provides that revenues received by municipalities from the cigarette tax are state funds and may be used for the cost purchase, building, repairing, altering, expanding, maintaining or otherwise operating streets, bridges, storm sewers, curbs, drains, gutters, water supplies, sanitary services, * * * sewage disposal systems, sewage disposal plants and facilities * * *. The certificates in question are proposed "for the purpose of installing, improving and extending the present sewage disposal system and plant of the city." The ordinance and resolution for issuance of the certificates so declares.
It cannot be questioned that the certificates of indebtedness are for an authorized purpose. The rule is that when certificates of indebtedness are for a public purpose, payable solely from revenues derived from service or rentals of the utility improved or constructed or from excise taxes, they may be issued without an approving vote of the freeholders as required by Section 6, Article IX of the Constitution, F.S.A.
There was a finding by the City of necessity for improving and expanding its sewer system, that the City does not have funds to make the improvement and that the revenues derived from the cigarette tax are more than ample to pay principal and interest on said certificates as they mature, that they are payable solely from said taxes and that no other revenues of the City are obligated to pay them. Chapter 210, Florida Statutes 1951, F.S.A., authorizes municipalities to impose the cigarette tax and provide for its distribution. It is an excise tax and may be used by the municipalities as the legislature directs without an approving vote of the people. It is in the same category as gasoline and other excise taxes that are allocated to the counties and municipalities.
The purpose for which the certificates are proposed is within the contemplation of Section 210.03(5), Florida Statutes 1951, F.S.A.; they impose no burden on the City in the way of ad valorem taxes and do not require an approving vote of the freeholders as contemplated by Section 6, Article IX of the Constitution, F.S.A., so long as the monies to retire the bonds are restricted to the cigarette taxes.
The decree appealed from is therefore affirmed.
Affirmed.
SEBRING, C.J., and THOMAS and HOBSON, JJ., concur.